|
Can I use debt consolidation for outstanding amounts other than credit cards and personal loans?
Unfortunately, you cannot consolidate every single debt you have if your debts include things like student loans, hospital bills, and the like. However you can still get help with those debts.
Regular debt consolidation takes debts like car loans, credit cards, store cards, and normal unsecured personal loans and consolidates them into one loan that you make payments on weekly or monthly.
Doing this significantly lowers the number of different entities that you make payments to each month, and the single payment could be considerably lower that what you were paying out in bills before.
If you have other personal debts like the student loans and hospital bills, you can still consolidate them, but you have to go through the individual entities to do so. For example, if you had to take several student loans while you were attending university and now find it hard to make the payments each month, you can contact a student loan consolidation center or the government and ask for a consolidation. This may actually be better for you in the long term, because any interest that is accrued on these can be a tax write off for you.
If you were to bundle that into a regular consolidation loan, then you would lose that ability. Student loans also generally have a lower interest rate than normal loans anyway, so it is easier to keep them together and just make a payment specifically for your student loan.
The same basic idea goes for hospital bills. Many hospitals realize that medical bills can become overwhelming, and if you meet with them, they may be able to put you on a payment plan that fits your income and your needs. They simply want their bills paid and they will work with you to ensure that that is possible. They would rather receive something each month than nothing.
Simply put, hospital bills, student loans, and other debts like them may not be able to be included in your main debt consolidation, but they can still be consolidated or rearranged to help you in the long run.Â
Other Question Categories
Sponsored Links
|
|
 More Personal Loans...
|
Credit Card Comparison